SCHEDULE 13G: Donald Smith & Co. and DSCO Value Fund Disclose 10.04% Passive Stake in Chatham Lodging Trust

Investment adviser Donald Smith & Co., Inc. and DSCO Value Fund, L.P. have jointly reported a passive beneficial ownership of 10.04% in Chatham Lodging Trust as of March 31, 2025.

Summary

• Donald Smith & Co., Inc. and DSCO Value Fund, L.P. have filed a Schedule 13G, indicating their beneficial ownership in Chatham Lodging Trust (CUSIP: 16208T102).
• As of March 31, 2025, the aggregate beneficial ownership by these entities is 4,916,914 shares of Common Stock.
• This represents 10.04% of the class of Chatham Lodging Trust's Common Stock.
• Donald Smith & Co., Inc. holds sole voting power over 4,538,333 shares and sole dispositive power over 4,874,110 shares.
• DSCO Value Fund, L.P. holds sole voting power over 42,804 shares and sole dispositive power over 42,804 shares.
• The securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of the issuer.

Sentiment

Score: 6

Explanation: The filing is neutral in its direct content regarding the issuer's performance, as it's a beneficial ownership report. However, the disclosure of a significant passive stake by a reputable investment firm can be interpreted as a moderately positive signal of investor confidence in the company's long-term prospects.

Positives

• A significant institutional investor, Donald Smith & Co., Inc., along with DSCO Value Fund, L.P., has disclosed a substantial 10.04% stake in Chatham Lodging Trust, potentially signaling confidence in the company.
• The filing explicitly states that the shares were acquired and are held in the ordinary course of business, indicating a passive investment strategy rather than an activist intent to influence control.

Future Outlook

NA

Management Comments

• Richard L. Greenberg, CEO & Co-CIO of Donald Smith & Co., Inc. and DSCO Value Fund, L.P., certified that the securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of the issuer.

Industry Context

This filing indicates a significant passive investment by an institutional fund in a lodging REIT, reflecting ongoing investor interest in the real estate sector, particularly hospitality, which is sensitive to economic and travel trends.

Comparison to Industry Standards

• As a Schedule 13G filing, this document primarily reports beneficial ownership and does not provide performance metrics for comparison.
• Institutional ownership levels are a common metric for assessing investor confidence. While specific comparable companies or projects are not mentioned, a 10.04% stake by a single investment group is a notable position within the REIT sector, often indicating a long-term, value-oriented investment approach.

Stakeholder Impact

• Shareholders: Increased transparency regarding significant ownership stakes, potentially signaling institutional confidence.

Key Dates

Keywords

Chatham Lodging Trust, Donald Smith & Co., DSCO Value Fund, Schedule 13G, beneficial ownership, common stock, investment adviser, passive investment, hotel REIT, lodging